Short-term resistance is ahead for Infosys

Infosys bounced back sharply last week after marking a low of ₹874. A key short-term resistance is ahead at ₹919, which is likely to be tested this week. The next move depends on whether Infosys breaks above this hurdle. A strong break above ₹919 will ease the downside pressure. A rise to ₹950 is possible then. Further break above ₹950 can take Infosys to ₹975. It will also increase the likelihood of the stock revisiting ₹1,000 levels. But, if the stock reverses lower from ₹919, it can fall below ₹900 again. In such a scenario, the stock can fall to ₹878 initially. A break below ₹878 will drag it to ₹866 — the first key long-term support level. A further break below it can drag Infosys lower to ₹840 and ₹830 — the next significant multi-year long-term trend line and 100-month moving average support level, respectively. A break below ₹840-₹830 support zone is unlikely. A strong upward reversal will keep the long-term uptrend intact and will have the potential to take the stock higher to ₹950 or higher levels. Investors can hold the long positions.

Read the rest of this article by Signing up for Portfolio.It's completely free!